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There is such a thing as a Shiite economy. Anticipating shock and potential objections, it is important to clarify that this observation is not intended to promote illicit sectarian division, but rather to shed light on an existing economic phenomenon.

The concept as such is neither peculiar nor unique. For decades, and until today, the notion of “political Maronitism” has been largely explored, without anyone taking offense. There are also the nostalgic ones who relish in reminiscing about Lebanon’s ‘Golden Age’ (1950s and 1960s). So, why shouldn’t there be a discourse about the Shiite economy? In fact, ‘political Shiism’ is real, but this topic should be left to the experts of this platform to expand on.

So, what exactly does economic Shiism stand for? There are two dimensions to this topic: an official one and an unofficial one. The prior relates to Shiite businesses and investors, and is legitimate. The latter is clearly illegal, as it evades all relevant legal considerations. 

Starting off with the unofficial one, we come across facts and transgressions that have become publicly notorious. Naim Qassem (Hezbollah’s Deputy Secretary General) has gone as far as qualifying illegal trafficking as an act of ‘Resistance’. That way, people are free to shop in Dahieh’s (the Southern suburbs of Beirut) open-air duty-free zone, which is surely more diverse than the national airport.

Let’s also not lose sight of the ongoing smuggling to Syria, which has enjoyed a golden age thanks to shady subsidy policies.

Then comes al-Qard-Al-Hassan, the pseudo-bank whose main objective is to replace the legal banks which are being slowly but surely wiped out. The harm being done to the banks can be credited to the likes of Ghada Aoun and other suspicious cliques, who are themselves nothing short of weapons of mass destruction.

The third transgression pertains to the industry and to the trafficking of drugs, weapons and other money laundering activities, which have spread far beyond the Lebanese borders, according to well-documented investigations.

A fourth and more discreet transgression is the stranglehold on public money, which fluctuates depending on the State’s institutions. It is heavily present, for example at the Social Security National Fund, the Lebanese University, the Regie, the Customs, and the Ministry of Agriculture, and in a lesser extent within other State’s organisms.

In addition, these violations occur through lucrative contracts with the State, massive hiring, and a stranglehold on public and private land properties… Furthermore, these violations are attributed to the direct influence of the Minister of Finance, who handles all the Ministries’ treasury. The Ministry is responsible for determining the recipients and timing of the allocation. This explains why the two main Shiite parties (Amal and Hezbollah) are adamant about holding on to this particular Ministry.

One might qualify these factors as trivial within the Shiite economic sphere. It is actually far from being the case. In fact, this issue is key. The Shiite predominance might not weight heavily within the formal and legal economic fabric, but this is not the case when it comes to demographic and political presence. Let’s explore this argument based on a few major sectors.

The collapse of the Jammal Trust Bank left the banking sector with only two Shiite banks, neither of which is considered to be a major player, MEAB (Middle-East and Africa Bank) and Fenicia Bank. 

The first one, who belongs to the Hojeij family, was close to being blacklisted by the United States, because of the shady activities of one of its co-founders. As a result, the latter immediately pulled out to preserve the bank. Interestingly enough, these two banks were never the target of violent attacks, neither from various depositors’ associations nor from the judiciary system.

The same applies to the insurance sector, which has a limited number of companies with an important number of Shiite stakeholders. In addition, there are many sectors in which the Shiite presence ranges from extremely limited to non-existent: cars, luxury goods, jewelry, maritime transport, food products, medicines, hotels and restaurants, cosmetics, fuels, electronic appliances and advertising, just to name a few.

One can then wonder about the Shiite presence or absence across the aforementioned sectors. In reality, Hezbollah’s supremacy has facilitated the community’s access to illegal activities. Furthermore, the Shiite environment doesn’t seem to be ripe for the business as we know it. The absence of stable investments in predominantly Shiite areas and the scarcity of banking branches are both indicators of a lack of legal economic activity.

Another relevant factor is that for decades, Shiites have not been welcome in Gulf countries, where most Lebanese entrepreneurs have had the opportunity to succeed financially. Furthermore, ever since the ties were severed between the Western countries and the Hezbollah, the only option left was Africa. This is where the majority of Shiites expanded their businesses, and made their colossal fortunes. For many, wealth meant teaming up with the corrupted African regimes in power. But few of these wealthy Shiite businessmen opted to invest their wealth properly in their Lebanese native regions. Instead, they chose to build luxurious villas. One only needs to visit the village of Nabatyeh to have a full view.  Rumor has it that Parliament speaker Nabih Berry and the pro-Iranian party impose exorbitant conditions on these expats. As a result, their investments become unprofitable.

In this murky world, two segments of the Shiite population have been sidelined. First and foremost, the clean cut executives and entrepreneurs who often have to show a seal of integrity, to avoid the nefarious and hindering reputation: “Oh, you’re a Shiite?! You don’t look like one”, as one example.

And then there is the typical Shiite, the one barely able to survive, but who has the tendency to engage in informal or illegal activities. The one who refuses to pay his dues to the State, and who makes ends meet thanks to the generosity of the supreme party (Hezbollah), who will buy his political dependence thanks to the financial support.

In essence, this is the reflection of a flawed, self-perpetuating system. As someone said it so well: inevitably, a deceiver finds a way to convince his conscience, embracing the allure of their transgression, as they bask in the deceptive beauty of their vice.